Brief
CEOs are realizing that in today’s tight labor market, attracting and retaining talented employees is key to staying competitive. Discover why talent challenges are a top concern for CEOs and what they can do to address them.
Insight
The top three concerns for CEOs in 2023 are talent challenges, developing the next generation of leaders and maintaining an engaged workforce, according to a study by Global Leadership Forecast 2023. As businesses and economic conditions remain uncertain, CEOs need a highly talented, well-rounded workforce that can pivot and solve new challenges.
However, in the wake of mass resignations and tight labour markets, 54% of companies saw their turnover increase in the previous year. As a result, companies that prioritise attracting and retaining the most talented teams will have an edge in the market ahead.
To achieve this, the C-suite needs to get serious about training leaders to practice empathy and build stronger relationships with their teams. In addition, CEOs need to think carefully about how they set the tone for the leadership culture in their organisation.
Developing next-gen leaders is also a high priority for CEOs, as young, high-potential leaders are acutely aware of their value in the labour market, which means that companies must work harder to retain them. Our research showed that three years tends to be the critical tipping point for these young leaders as they evaluate whether they have long-term opportunities for growth at their current company.
C-suite leaders should cultivate a culture of internal mobility, along with offering development programs that help these leaders feel they are being invested in.
Maintaining an engaged workforce is another top concern for CEOs, which leads to better performance across the board. While employee engagement isn’t new, our research showed that there are two critical factors at play right now that are driving employees’ sense of engagement. A strong sense of purpose at work is a crucial factor in engagement.
Participants in our study who said they had a strong sense of purpose were 9x more likely to feel engaged in their role and 2.4x more likely to say they intended to stay at the company. Creating a strong sense of purpose starts at the top of the organization. Unfortunately, only 63% of C-suite leaders reported having a strong sense of purpose themselves.
Therefore, it’s essential that the C-suite pay attention to this to maintain an engaged workforce.The C-suite must set clear and realistic performance expectations to ensure development programs are effective. Leaders want to know what it takes to succeed in their current roles and how they can get to the next level.
C-suite leaders should think about how they reward and advance leaders who show effective leadership behaviours over those who put in more hours, which may or may not lead to better results. Lastly, effective coaching is critical: 85% of high-potential leaders want more coaching, whether from internal or external coaches, to help them develop as leaders.
Highlight
- Developing empathy and interpersonal skills in leaders is critical for retaining talented employees.
- Remote work policies are a major factor in employee retention, with younger leaders being more likely to leave companies that do not support flexible work.
- Cultivating a culture of internal mobility and offering development programs can help retain high-potential leaders.
- Maintaining an engaged workforce requires providing fair compensation, growth opportunities, and a strong sense of purpose at work.
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Related Questions:
- How can companies retain talent?
- How do you keep talented people in your organization?
- What is the CEOs role in talent management?
- How can managers retain talented staff?
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